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Deposit Takers Act 2023

Crisis management and resolution - Covered bonds - Cover pool monitor

419: Cover pool monitor

You could also call this:

"A person who checks investments to ensure they are safe and follow the rules."

Illustration for Deposit Takers Act 2023

You need a cover pool monitor when dealing with certain investments. This monitor must be independent of the company offering the investment. They must also meet certain requirements, such as being a licensed auditor under the Auditor Regulation Act 2011, or a registered audit firm that follows certain rules. You can also have a cover pool monitor who is a member of a class of persons or firms approved by the Bank. Their job is to do the things specified in section 420. When we say independent, we mean the monitor must not be connected to the company offering the investment or anyone related to that company. Being an auditor does not affect someone's independence in this role.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS475575.

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Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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Part 7Crisis management and resolution
Covered bonds: Cover pool monitor

419Cover pool monitor

  1. A cover pool monitor must—

  2. be independent of the issuer; and
    1. be 1 or more of the following:
      1. a licensed auditor under the Auditor Regulation Act 2011:
        1. a registered audit firm under the Auditor Regulation Act 2011, if the issuer ensures that appropriate arrangements are in place to ensure that the functions of the cover pool monitor are performed by, or under the supervision of, a licensed auditor:
          1. a member of any other class of persons or firms that has been approved by the Bank; and
          2. be required, under its contract of appointment, to do the things specified in section 420.

            1. For the purposes of this section, independent means independent of both the issuer and any associated person of the issuer.

            2. However, a person’s appointment as auditor does not affect their independence.

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